subject: Auto Insurance Quotes And Pay-as-you-drive Policies [print this page] There are many things that are taken into consideration by the insurer when calculating auto insurance quotes. All these factors, some of which may seem a bit strange in the context to the customer, are used to assess the potential driving style and the risk of filing a claim the company faces when insuring a particular person.
However, the new technologies that are being implemented in cars in modern cars allow the insurers to understand the customer's driving style more accurately and offer new types of services with respect to that. Almost all upper class cars that have been produced in the recent years feature a central computer that carries some functions similar to the "black box" found in planes. That is, it records all the acceleration and braking data, and can provide an analysis of the driving style and overall distance if accessed by a professional. Based on this data the insurance company can better assess your driving skills and charge you with more accurate rates compared to those based on simple demographic statistics analysis that is commonly used when calculating auto insurance quotes.
Insurance companies usually develop dedicated tracking programs that allow reading the data from the internal devices of the car, or even install such a device if there isn't one provided by default. The options usually vary depending on the particular insurer you're covered with, so it is important to ask about the conditions and the extent of this tracking program with each company. Some insurers even offer the option of checking your statistics online via dedicated sites. So it's a good way to assess your driving manners and take respective measures if you feel like they are inappropriate. But what's the result of enrolling in such a program and who it may benefit the most?
First of all, pay-as-you-drive programs that involve tracking data from your car are designed as separate products for shorter periods of time compared to conventional policies. You can buy such a policy for a limited time while actively driving and leave the car uninsured while not using it - there won't be any penalty for not continuing the policy. So this type of auto insurance will best suit drivers who use their cars occasionally and are in need of auto insurance only for short periods of time. It's evident that buying a full-scale policy isn't convenient for them both in terms of rates and conditions. Thus, pay-as-you-drive represents a very convenient solution for such car owners. And it delivers a great opportunity for saving money too!
Drivers who tend to drive a low amount of miles per year are certainly the ones that will benefit the most from having such a policy. There are usually significant incentives if a driver doesn't reach a particular amount, with discounts ranging from 10% to 50% depending on the yearly mileage. So it's really great for drivers who don't use their cars too often and tend to be responsible in traffic.
On the other hand, drivers who tend to drive a lot, exceed the speed limit too often and act reckless in general will find tracking devices and pay-as-you-drive options a nuisance. So choose your options according you coverage requirements and driving style.
by: Edwin Mata
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